Basis of class action The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Tenet Fintech Group Inc. f/k/a Peak Fintech Group Inc. Investors
The Law Offices of Frank R. Cruz announced that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Tenet Fintech Group Inc. f/k/a Peak Fintech Group Inc. securities between September 2, 2021 and October 13, 2021, inclusive (the "Class Period"). Tenet investors have until January 18, 2022to file a lead plaintiff motion. Then on October 4, 2021, Grizzly Research published a report alleging that the acquisition of Heartbeat Insurance Platform, a Chinese insurance product management and brokerage platform, was rife with factual inaccuracies and suspicious transactions. The report also refuted the Company's claim that it owns 51% of Asia Synergy Financial Capital Ltd. through its wholly-owned subsidiary and alleged that its acquisition of Cubeler Inc. "evidence[d] self-dealing." The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company did not own 51% of ASFC through Wuxi Aorong; (2) the Company did not disclose its actual ownership structure of ASFC, an undisclosed and potentially problematic nominee shareholder agreement; (3) Huayan did not own the Heartbeat platform; (4) the Heartbeat platform did not exist prior to the alleged acquisition; (5) the Company faced imminent delisting from NASDAQ due to non-compliance with known regulations; (6) the "recent disclosure guidance" was in fact published on November 23, 2020, nearly a full nine months prior to the Company's uplisting; (7) as such, the Company knew or should have known that its Form 40-F submission was deficient; (8) Cubeler historically failed to make even minimum loan repayments to the Company; (9) the Company, instead of exercising its right on the assets, decided to purchase Cubeler; (10) in light of the foregoing, and consideration of the fact that Cubeler is owned by several Company insiders, the acquisition of Cubeler is not based on legitimate business interests; the ASFC shareholder had his assets frozen due to court sanctions; (11) the creation of ASFC itself was likely a related party transaction; and (12) as a result of the foregoing, defendants' public statements were materially false and/or misleading at all relevant times.